The falling dollar.

• Author: Steffens, Michelle
• Position: Alaska Trends

The U.S. dollar tends to fluctuate in value compared to other world currencies. Value is defined by the exchange rate (or the equivalency of one U.S. dollar in a foreign currency). How much has the dollar value actually changed over time? The chart shows percentage changes in dollar exchange rates during 2001-2008 relative to the following five currencies: Canadian dollars (CAD), Chinese yuan (CNY), European euros (EUR), British pounds (GBP), and Japanese yen (JPY). The base used for comparison is the first quarter of 2001.

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In British pounds and euros, the U.S. dollar exchange rate peaked in 2001 at 3 percent and 6 percent, respectively, above base value. In 2002, the dollar climaxed at 4 percent above base in Canadian dollars and 12 percent above in Japanese yen. Regarding Chinese yuan, the dollar never increased in value during the given...